'Highly fluid': IMF says too early to assess economic impact of West Asia crisis; India says supplies are 'robust'

IMF observes trade disruptions and energy surge; India says eight weeks of oil inventory and diversified sourcing limit exposure.

• IMF says it's too early to assess West Asia conflict's impact
• India assures robust energy supplies amid Middle East tensions
• India has 8 weeks of oil inventory and diversified sourcing

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Amid escalating tensions in West Asia, the International Monetary Fund (IMF) on Tuesday said it is “closely monitoring developments” and that it is too early to assess the economic impact on the region and the global economy, according to a report by ANI.

The IMF said it has “observed disruptions to trade and economic activity, surges in energy prices, and volatility in financial markets,” ANI reported.

“The situation remains highly fluid and adds to an already uncertain global economic environment,” the IMF said in a statement, as cited by ANI.

“It is too early to assess the economic impact on the region and the global economy. That impact will depend on the extent and duration of the conflict,” the IMF said, according to ANI.

The IMF’s remarks come as energy markets and financial assets have reacted to the widening conflict in the region, with higher oil prices and increased volatility across global markets.

Separately, India said it is continuously monitoring the growing crisis in the region.

Hardeep Singh Puri, Minister of Petroleum and Natural Gas, briefed the media earlier on Tuesday and said, “India is fully prepared amid evolving situation in the Middle East and energy supplies are robust.”

The minister said the country is “well stocked with crude oil and inventories of key petroleum products including petrol, diesel and ATF to deal with short-term disruptions arising from the Middle East.”

He added that Indian energy companies now have access to energy supplies that are not routed through the Strait of Hormuz. Such cargoes will remain available and help mitigate supplies that may be temporarily affected en route through the Strait of Hormuz.

The Petroleum Ministry has established a 24x7 Control Room to continuously monitor the supply and stock position of petroleum products across the country.

In a press briefing, Puri said the government is “reasonably comfortable” in terms of stocks and that safeguarding the interests of Indian consumers remains the highest priority. Based on continuous monitoring, the government is “cautiously optimistic” that phased measures can be taken, if required, to further mitigate the situation.

Earlier on Tuesday, government sources said India has a total of eight weeks of crude oil and petroleum products inventory, including strategic reserves, and that only about 40 per cent of India’s crude oil imports transit through the Strait of Hormuz.

The sources said this significantly limits India’s exposure to regional disruptions and asserted that the country remains in a comfortable position on energy security amid the evolving situation in the West Asian region.

They added that India is closely monitoring developments but is well prepared to manage potential supply-side challenges due to adequate inventory levels and diversified sourcing.

The statements from the IMF and Indian officials come as global markets assess the implications of the ongoing conflict for trade flows, energy supplies and financial stability.